Greater LEP's response to the LEP Review

Annex One -The Case for a Strengthened Greater Lincolnshire LEP

A task and finish group of the Greater Lincolnshire LEP Board Directors has undertaken a review of its geography over the summer. It considered 5 proposals of functional economic geography, and the removal of the two local authority overlaps with the LEP, namely North and North East Lincolnshire, then considered a further test of workability (scale and ambition, deliverability, and views of stakeholders).

Two proposals for LEPs were agreed by the full LEP board on 20th September, namely Greater Lincolnshire and Humber and Lincolnshire. All members of the LEP board agreed that Greater Lincolnshire is a functioning economic geography. This document explores the functional economic evidence and proposed collaborations in each of the two proposals.

The preferred model is for Greater Lincolnshire LEP including all 11 Lincolnshire and Local Authorities.

Functional Economic Areas - As the Greater Lincolnshire LEP considered its geography, the LEP also gave consideration as to whether the LEP’s area is of the right size and scale, relative to other LEPs. There is a range of metrics that the LEP drew upon to reflect our current geography as a functional economic area.

The following is a guide of some of the data sets that the LEP has considered:

 Size - the number of resident population in the area;  Scale - the land mass of the area;  Self-containment rate - the travel to work area;  Productivity - the business GVA in that area;  Partnership - the number of local authorities in the partnership;  Interaction and Corridors with larger cross regional boundaries such as Northern Powerhouse and Engine

Stakeholder and Business View - LEPs are business-led organisations, and as such the views of the businesses within the geography must be taken into consideration. A number of conversations have taken place over the summer months with the business community, and with representation organisation such as the CBI, IOD, FSB, EEF and the Chambers of Commerce. A notice has been placed on our website to gather views from local stakeholders, as well as using social media. The overwhelming majority of responses have supported a Greater Lincolnshire geography. 10 out of the 11 local authorities support a Greater Lincolnshire geography.

Whilst the overwhelming response of the business community favoured a Greater Lincolnshire geography, there was some support for a wider geography embracing the Humber and Lincolnshire.

Collaboration - Greater Lincolnshire's porous boundaries will further be strengthened through our collaborations. We will continue to support the delivery of planning and interventions at the most appropriate level (e.g. Midlands Engine / Northern Powerhouse in areas such as transport infrastructure and innovation). Greater Lincolnshire's porous boundaries will further be strengthened through our collaborations.

 D2N2 and LLEP – further enhance informal arrangements to create stronger alliance across the LEP, and Midlands Engine LEP's to work in partnership within the Midlands Engine. Regular meetings of the LEP Chairs and Chief Executives occur, with proposals to develop joint research, prospectus, and collaboration on projects. An example of this is the east midlands working together on a proposal for digitalisation within the Made Smarter Review, joint proposals for Skills pilots.

1 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

 Humber/ LEP – formalise informal relationships to work closely together on common agendas such as Agri-tech and Food, and the strong functional economic geography of northern Lincolnshire is recognised in the A46, A15 housing and employment corridor. The two overlapping LEPs have worked hard to not duplicate in either strategy or delivery, agreeing at each stage who takes the lead. For example joint calls on ESIF, leads on SEP's, and joint events in key sectors. A corridor approach is proposed to reflect the strong functional economic geography of and northern Lincolnshire in particular WLDC and ELDC. This corridor approach will recognise the infrastructure links and economic links between the areas.  Sheffield City Region and Northern Lincolnshire - further enhance the corridor between north Lincolnshire and Doncaster and Sheffield.  GCGP LEP - The Greater Lincolnshire LEP is proposing strong collaboration to recognise the strong economic links. Once the Business Board of the Combined Authority is established, we will explore the form and focus of the collaboration. In terms of functional economic geography, the southern part of Lincolnshire ( and South Holland) and the area are already well connected. For South Holland, the economy is principally agri-food and manufacturing based, centred on Spalding; with potential for collaboration around the innovation, skills and housing growth agenda with partners in GCGP to further grow the economy. For South Kesteven, we recognise and want to build on the upon the strong established ‘travel to work’ and ‘strategic housing market area’ linkages, maximise the advanced engineering, agri-food and drink, land-based business synergies and enable a stronger focus on nationally strategic transport corridor improvements such as the A1 and East Coast Mainline corridors  Sector based collaborations - Greater Lincolnshire leads nationally on the Food and Drink Sector Council, and Midlands Engine for Food and Drink and Agri-Tech, building on the sector strengths across the east midlands, GCGP and New Anglia

Summary Table

Proposal One Proposal Two

Preferred Option Humber and Lincolnshire Geography Proposals Greater Lincolnshire LEP Scale Population 1,082,300 1,681,025

Area 6,958 9,441

Ambition Sectoral Very strong alignment with present Strong alignment between SEP and SEP, Food, Manufacturing, Visitor LIS, Food, Manufacturing, Visitor Economy, Ports and Logistics Economy, Ports and Logistics, Renewables, and Petro Chemicals

Socio-Economic , , Lincoln similar, Lincoln, Hull, Scunthorpe and geography with the remainder of Lincolnshire Grimsby similar, with East Ridings and Lincolnshire similar

Corridors Yorkshire and Humber, North Hull to East Riding, East Coast, Lincolnshire to Doncaster, South Northern Lincolnshire to Yorkshire Lincolnshire to Peterborough, Lincoln and Humber, Northern Lincolnshire to Newark to Doncaster, Northern Lincolnshire to WLDC and ELDC, Lincoln to Newark, Southern Lincolnshire into Peterborough and Cambridgeshire

2 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

Workability Distances 117km North to South; 169km North to South; 85km East to West 85km East to West

Governance Model Existing Structure To be agreed with partners Strong accountable model compliant with LEP Review Government appeal Scale to immediately deliver UKSPF Ambitious merger for the area Overwhelming support from the Business and Public Sector for a Greater Lincolnshire Geography Accountable and deliverable

Proposal 1 - Greater Lincolnshire LEP

With a population of 1,112,000, the Greater Lincolnshire area is a real and natural economic functional area with a strong cultural identity. A key determinant of this is its level of self-containment, the Greater Lincolnshire average figure is 90% making it the seventh highest of any LEP area. There is a high degree of both geographical and sectorial similarity. Greater Lincolnshire’s economic strategy sees North and North East Lincolnshire, the areas of overlap, as key areas for growth, and has invested significant sums (£32 million and £30 million respectively).

10 out of the 11 local authorities strongly support the Greater Lincolnshire geography along with stakeholders from the business community, business representative organisations, and HE and FE. Greater Lincolnshire has a convincing track record of strategy formulation and delivery, and is in a strong position to implement the LEP review, and immediately deliver future local growth funding and UK SPF. The Greater Lincolnshire proposal for geography includes all 10 greater Lincolnshire Local Authorities and Rutland.

Many existing external organisations and partnerships operate at this spatial level, such as the Leaders Board, Federation of Colleges, Nature Partnerships, sector groups and Business rep organisations. A number of other programmes have or are being developed within this geography, DFE pilots, Institutes of Technology, Growth Hubs etc.

The Greater Lincolnshire proposal would need formal collaboration over the Humber, either through a committee, development corporation or marketing Humber board yet to be discussed and agreed. Further proposals for collaboration between the LEP and neighbouring LEPs are outlined in this document.

3 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

 Historic County of Lincolnshire, with social, cultural, heritage and historic connections  People and businesses identify with Lincolnshire  Physical barrier of the Humber estuary  Strong commonality of a functional economy  History of working together to achieve economic growth  Regional partnerships Midlands Engine and Northern Powerhouse.  Governance model established  Strong support from the Local Authority community  Good size and structure to deliver programmes  Can immediately deliver UKSPF and LIS  Right corporate governance structure to contract

Indicator Value Relative positioning

Population 1,082,300 22nd

Area 6,958sq km 7th

Structure 2 UA, 1 Upper, 7 Lower 9=

Resident Containment 87% 17

Travel to Work 8 areas -

Strongest Sectors LQ Agri-food Manufacturing

Visitor Economy Ports/Logistics

Renewables

Educational Institutions 2 HE, 6 FE -

Economic Output (GVA) 20.55bn; 26

£19,300 per head 31

Geography

This option maintains the current area of Greater Lincolnshire in its current state with North and North East Lincolnshire aligning to the Lincolnshire LEP. The area would consists of 3 Unitaries: North East Lincolnshire, North Lincolnshire and Rutland, 1 Upper Tier County: Lincolnshire, 7 Lower Tier County: Boston, , , South Holland, South Kesteven, . The two neighbouring LEP' s would need to agree a formal collaboration around the Humber Estuary in a delivery model or governance model yet to be agreed, such as co- opted board members, or a development corporation/Humber Delivery vehicle.

4 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

We understand through conversations with our neighbouring LEP's that this proposal would be a conflict with the Humber LEP's model of the Humber wide LEP being proposed to government but is supported by business and local politicians.

Scale: The scale of Greater Lincolnshire LEP would be on the lower size of most LEPs currently, but in terms of land mass would be significant. The economic focus would be infrastructure, Food and fishing, Energy, Manufacturing, ports and logistics, renewables and the visitor economy. The geography is similar GVA and productivity challenges, and appetitive for economic and housing growth, and common areas of sector specialisms.

Workability - In terms of governance, the company limited by guarantee model already established by the Greater Lincolnshire LEP, and governance could continue relatively unchanged. The geography however is compact and able to deliver at pace with our local authority partners and education institutes. The Greater Lincolnshire LEP could be an early adopter or pilot area for UKSPF, and once the geography is agreed could proceed at pace with the Local Industrial Strategy. All partners, including all 11 local authorities recognise that Greater Lincolnshire is a functional economic area. 10 out of the 11 local authorities have expressed their preference for a Greater Lincolnshire geography. Recognising this, our suggestion would be a follow up joint meeting with the Humber LEP and Ministers to review options and try to broker a solution.

Functioning Economic Geography

Containment - In terms of containment around 90 per cent of those who live within the area also work within the area. The only area where the geography has some significant leakage is to the south, where Peterborough draws residents from South Kesteven and South Holland to work. Flows from North and North East Lincolnshire typically look south or west towards East Lindsey and Doncaster, with fewer looking North. Double the number of commuters pass to/from North East Lincolnshire to East Lindsey than to Hull/East Riding.

Travel to work areas - Greater Lincolnshire has 8 travel to work areas, of which 5 are entirely contiguous with the areas boundary. The areas which cross the boundary are Lincoln and (both with populations outside of Greater Lincolnshire coming in to work) and Peterborough (with populations within the area who look out to these locations for work).

Sectoral And Labour Market Mix - In terms of sectoral strengths and focus for Greater Lincolnshire would continue to be Agri-food, Manufacturing, Visitor Economy, Ports and Logistics. Geographically agrifood has a strong presence in the North and South of the area. Lincoln, Rutland and the Coast has a prominent visitor economy sector whilst manufacturing is particularly concentrated around Grantham, Lincoln, Scunthorpe and Grimsby. Based on sectoral breakdowns and structure of the labour market, North and North East Lincolnshire have very similar traits to one another. Manufacturing features heavily in the list of most specialised industries within the area, in particular manufacture of food, petroleum, metals and paper. Accommodation (visitor economy) also features heavily within the area. The whole area has a strong military presence, and opportunities to deliver housing and employment growth on redundant MOD sites, as well as significant growing and skilled population.

The top 20 specialisms in terms of sectoral specialism within the area, Agri-food and manufacture in Greater Lincolnshire.

5 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

Option 2 - Greater Lincolnshire Industry LQ (where England average =1) 19 : Manufacture of coke and refined petroleum products 1450 13.4 10 : Manufacture of food products 23500 4.4 24 : Manufacture of basic metals 3670 3.9 03 : Fishing and aquaculture 160 3.2 17 : Manufacture of paper and paper products 1660 2.3 36 : Water collection, treatment and supply 1050 2.1 31 : Manufacture of furniture 2465 2.1 22 : Manufacture of rubber and plastic products 4275 2.0 01 : Crop and animal production, hunting and related service activities 9068 1.9 16 : Manufacture of wood and of products of wood and cork, except furniture;manufacture of articles of straw and plaiting materials 1970 1.8 42 : Civil engineering 5600 1.8 55 : Accommodation 11050 1.8 20 : Manufacture of chemicals and chemical products 2125 1.6 37 : Sewerage 500 1.6 38 : Waste collection, treatment and disposal activities; materials recovery 3025 1.6 08 : Other mining and quarrying 350 1.6 43 : Specialised construction activities 14625 1.5 49 : Land transport and transport via pipelines 12500 1.4

45 : Wholesale and retail trade and repair of motor vehicles and motorcycles 10875 1.4 33 : Repair and installation of machinery and equipment 2475 1.4

Character Area - In terms of character area, the North and South of the Humber are defined by areas which predominantly run North-South rather than East-West based on the Natural England Character area profiles.

6 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

North North East Sectoral Structure Matrix Lincolnshire Lincolnshire Lincolnshire Lincolnshire 70% 73% North Lincolnshire 70% 76% North East Lincolnshire 73% 76%

Occupational Structure North North East Lincolnshire Matrix Lincolnshire Lincolnshire Lincolnshire 90% 86% North Lincolnshire 90% 90% North East Lincolnshire 86% 90%

Labour Market and Skills North North East Lincolnshire Indicator Matrix Lincolnshire Lincolnshire Lincolnshire 96% 94% North Lincolnshire 96% 98% North East Lincolnshire 94% 98%

North North East Overall Lincolnshire Lincolnshire Lincolnshire Lincolnshire 85% 84% North Lincolnshire 86% 88% North East Lincolnshire 85% 88%

Relative sectoral makeup likeness (based on Broad Industry Groups) LOW MEDIUM HIGH

7 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

Proposal Two Humber and Lincolnshire LEP Geography

 Ambitious and at scale LEP geography for the Eastern Gateway  Larger LEP - One single LEP  Embraces the Humber and the opportunities across the areas, and the scale of the area, for bigger issues infrastructure, energy and skills.  Strong focus on productivity and inclusive growth  Strong commonality of a functional economy, food, manufacturing, renewables  Regional partnerships midlands engine and northern powerhouse.- a gateway between the midlands and the north.  Size to develop programmes at scale for UKSPF

Proposal 2 Humber and Lincolnshire merger

A second option was considered and supported by the Greater Lincolnshire LEP Board. The Board recognised that Humber and Lincolnshire was a functional economic area, and they were supportive of exploring a progressive merger that would deliver both the removal of the overlapping geography, and creating a larger and ambitious LEP for the area and create an economic corridor between the Northern Powerhouse and the Midlands Engine – an eastern gateway. The Humber and Lincolnshire geography passes the functional economic test with little impact on the strategy and very similar economies, issues and opportunities. The Humber LEP does not currently support this proposal and there are a mixture of views from our local stakeholders such as local authorities and the business community.

Geography: Economically the similarities are a longstanding underperformance of productivity, predominance of small business, significant shrinkage of working age population, loss of services in rural areas, significant investment needed in road and rail infrastructure, and the cost and resilience of energy supply. A proposed merger between the two overlapping LEPs (Humber and Greater Lincolnshire) from East Riding to the south of Lincolnshire and Rutland). A population 1.8 million, and significant land mass. In terms of containment is 88%, this is still high, just 2% less than the Greater Lincolnshire Model. Geographically, there is a concentration of the Ports and Logistics, Chemicals and Energy around the Humber bank, whilst agri-food, manufacturing and visitor economy is prominent in southern Lincolnshire and in East Riding. All of the sectors interconnect. Based on sectoral breakdowns and structure of the labour market, the majority of Lincolnshire bears very strong similarities to North Lincolnshire and East Riding, whilst Hull, Lincoln, Scunthorpe and Grimsby in particular have strong structural similarities. There is a good case for a functional economic geography with this proposal.

8 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

Scale and Ambition – This proposal achieves scale for a larger LEP, with more impact nationally. It would be larger geographical area that will focus on productivity, local industrial strategy and the ambitions of the area in terms of infrastructure, energy, inclusive growth and coastal and rural issues. Nationally this could be where the Midlands Engine works with the Northern Powerhouse. Really strong correlation in terms of strategy and existing businesses between food, energy, visitor economy, manufacturing and ports and logistics.

In terms of governance this would need to be developed, discussed and agreed with all partners. Over a period of time, it could be one chair, one LEP board, one accountable body, one chief executive, with two vice chairs drawn from the business community, one for each of the local areas; Humber and Lincolnshire and Rutland. As with all options there would need to be strong and formal collaboration between the LEP and neighbouring LEP's such as GCGP LEP, D2N2, Sheffield City Region and North Yorkshire LEP. The governance options would need to be tested with government. If this is considered an option, an governance options paper would need to be developed by the LEP's.

Indicator Value Relative positioning

Population 1,681,025 13

Area 9,441sq km 3

Structure 4 UA, 1 Upper, 7 Lower 11=

Containment 88% 16

Travel to Work 11 areas -

Sectors Agri-food Manufacturing

Visitor Economy Ports/Logistics

Chemicals Energy

Educational Institutions 3 HE, 9 FE -

Economic Output (GVA) 33.26bn; 17

£19,900 per head 28

Geography - This option merges the areas of the Humber and Greater Lincolnshire LEPs, covering an area of nearly 9,500 square kilometres, and a distance of around 180km from top to bottom. The area covers a large around 250km of coastline, significant areas of sparsely populated rural, two cities, and urban areas pivoted on the Humber estuary. In terms of local authorities, the area consists of: 4 Unitary: , , North East Lincolnshire, North Lincolnshire, 1 Upper Tier County: Lincolnshire, 7 Lower Tier County: Boston, East Lindsey, North Kesteven, South Holland, South Kesteven, West Lindsey and Rutland

Containment of the work force - In terms of containment around 87.5 per cent of those who live within the area also work within the area. The only area where the geography has some significant leakage is to the south, where Peterborough draws residents from South Kesteven and South Holland to work. There is also an influence of on 9 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

East Riding, but to a much lesser extent with 85 per cent of East Riding residents working within the Humber/Lincolnshire area. Around 146,000 people commute to and from local authorities within the Humber/Lincolnshire area, with 405,000 working within the same local authority they live in and 76,000 commute to/from areas outside of the Humber/Lincolnshire area.

Travel to work areas

The area contains 11 travel to work areas, of which 7 are entirely contiguous with the areas boundary (figure 1). The four areas which cross the boundary are Lincoln and Grantham (both with populations outside of the Humber/Lincolnshire area who look into the area for work) and Peterborough and York (with populations within the area who look out to these locations for work).

Sectoral and Labour Market Mix

In terms of sectoral strengths and focus the following sectors would be the most prominent for the area:

Agri-food , Manufacturing, Visitor Economy, Ports and Logistics, Chemicals, Energy

Geographically, there is a concentration of the Ports and Logistics, Chemicals and Energy around the Humber bank, whilst agri-food, manufacturing and visitor economy is prominent in southern Lincolnshire and this is strongly reflected in East Riding. Based on sectoral breakdowns and structure of the labour market the majority of Lincolnshire bears very strong similarities to North Lincolnshire and East Riding, whilst Hull, Lincoln, Scunthorpe and Grimsby in particular have strong structural similarities (see Figure 4).

10 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

The top 20 specialisms in terms of sectoral specialism within the area. As can be seen, agri-food and manufacture dominate as well as accommodation (visitor economy). Option 1 - Humber and Lincolnshire Industry LQ (where England Employment average =1) 03 : Fishing and aquaculture 1,045 13.2 09 : Mining support service activities 490 8.8 19 : Manufacture of coke and refined petroleum products 1,450 8.5 10 : Manufacture of food products 31,500 3.8 24 : Manufacture of basic metals 3,845 2.6 31 : Manufacture of furniture 4,840 2.6 21 : Manufacture of basic pharmaceutical products and pharmaceutical 1,950 2.6 preparations 16 : Manufacture of wood and of products of wood and cork, except 3,820 2.3 furniture;manufacture of articles of straw and plaiting materials 08 : Other mining and quarrying 765 2.2 17 : Manufacture of paper and paper products 2,435 2.1 20 : Manufacture of chemicals and chemical products 4,250 2.1 22 : Manufacture of rubber and plastic products 6,750 2.0 01 : Crop and animal production, hunting and related service activities 12,990 1.7 02 : Forestry and logging 295 1.5 23 : Manufacture of other non-metallic mineral products 2,495 1.5 18 : Printing and reproduction of recorded media 3,615 1.5 55 : Accommodation 14,200 1.4 87 : Residential care activities 22,500 1.4 36 : Water collection, treatment and supply 1,100 1.4 45 : Wholesale and retail trade and repair of motor vehicles and motorcycles 16,875 1.4

Character Area

In terms of character area, the North and South of the Humber are defined by separate character areas which predominantly run North-South rather than East-West based on the Natural England Character area profiles.

11 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

Similarity Matrices

North North East East Riding of Kingston upon Sectoral Structure Matrix Lincolnshire Lincolnshire Lincolnshire Yorkshire Hull, City of Lincolnshire 70% 73% 81% 74% North Lincolnshire 70% 76% 71% 69% North East Lincolnshire 73% 76% 72% 81% East Riding of Yorkshire 81% 71% 72% 70% Kingston upon Hull, City of 74% 69% 81% 70%

Occupational Structure North North East East Riding of Kingston upon Lincolnshire Matrix Lincolnshire Lincolnshire Yorkshire Hull, City of Lincolnshire 90% 86% 87% 83% North Lincolnshire 90% 90% 81% 87% North East Lincolnshire 86% 90% 74% 88% East Riding of Yorkshire 87% 81% 74% 71% Kingston upon Hull, City of 83% 87% 88% 71%

Labour Market and Skills North North East East Riding of Kingston upon Lincolnshire Indicator Matrix Lincolnshire Lincolnshire Yorkshire Hull, City of Lincolnshire 96% 94% 97% 95% North Lincolnshire 96% 98% 96% 96% North East Lincolnshire 94% 98% 94% 97% East Riding of Yorkshire 97% 96% 94% 93% Kingston upon Hull, City of 95% 96% 97% 93%

North North East East Riding of Kingston upon Overall Lincolnshire Lincolnshire Lincolnshire Yorkshire Hull, City of Lincolnshire 85% 84% 88% 84% North Lincolnshire 86% 88% 83% 84% North East Lincolnshire 85% 88% 80% 89% East Riding of Yorkshire 88% 83% 80% 78% Kingston upon Hull, City of 84% 84% 89% 78%

Relative sectoral makeup likeness (based on Broad Industry Groups) LOW MEDIUM HIGH

Stakeholder and Business View

LEP are business led organisations, and as such the views of the business within the geography must be taken into consideration. A number of conversations have taken place over the summer months with the business community, and with representation organisation such as the CBI, IOD, FSB, EEF and the Chambers of Commerce. Most of the business community a Greater Lincolnshire Model, and could see the benefits of a wider and ambitious geography for the eastern corridor of the country. They recognise the functional economic area of the Humber and Lincolnshire, however as the majority of stakeholders support a Greater Lincolnshire geography, there are mixed views concerning the workability of a merger.

12 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

13 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

14 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

15 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

16 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018

17 | P a g e – A case for the Greater Lincolnshire LEP 26th September 2018